Southern Company Modernizes Hydro Fleet for Tomorrow's Energy

A Legacy of Clean Energy and Modernization

For over a century, The Southern Company’s largest electric subsidiary, Georgia Power, has been a key player in providing clean, emission-free energy to the state of Georgia. Through its hydroelectric facilities, the company has played a vital role in supporting the region's energy needs while maintaining environmental sustainability. With 15 owned hydro plants and an interest in a 16th, Georgia Power operates 66 hydroelectric generating units that collectively provide more than 1,100 MW of carbon-free capacity.

Beyond just power generation, these facilities also serve as recreational hubs for Georgians. Lakes such as Oconee, Burton, and Tugalo are open to the public, offering opportunities for camping, watersports, and other outdoor activities. This dual purpose of energy production and community engagement highlights the broader impact of Georgia Power’s operations on the state.

Modernizing for Long-Term Reliability

As Georgia continues to grow, so too does the need for reliable and sustainable energy sources. Georgia Power is responding to this demand by investing in the modernization of its hydro fleet, with approval from the Georgia Public Service Commission. As part of the 2025 Integrated Resource Plan, upgrades are currently underway at several key locations, including Tallulah, Yonah, Bartlett’s Ferry, and North Highlands.

These projects involve refurbishing critical components such as turbines, generators, and balance-of-plant systems. The goal is to extend the life of these facilities by another 40 years while ensuring they meet all federal licensing requirements. This commitment to infrastructure renewal not only ensures continued service but also reinforces Georgia Power’s dedication to long-term reliability and environmental responsibility.

Recent Progress Across Facilities

Recent efforts have already led to significant improvements across several hydroelectric sites. At Plant Tugalo, which has been in operation since the 1920s, the aging units received new turbines, generators, and updated control systems. Similarly, Plant Terrora saw similar upgrades earlier in the year.

Additional progress includes work at Bartlett’s Ferry, Nacoochee, Oliver, Burton, and Sinclair. Notably, Bartlett’s Ferry Unit 1 was recently returned to service after undergoing major upgrades. These ongoing improvements demonstrate the company’s proactive approach to maintaining and enhancing its energy infrastructure.

Powering Georgia’s Future

According to Rick Anderson, senior vice president at Georgia Power, modernizing hydro plants is essential for ensuring reliable service, regulatory compliance, and long-term customer value. These efforts go beyond preserving historical resources—they are about building a sustainable, carbon-free energy future for Georgia. By investing in the modernization of its hydro fleet, Georgia Power is positioning itself to meet the evolving energy demands of the state while staying true to its commitment to environmental stewardship.

Investment Opportunities in the Utility Sector

The Southern Company, which oversees the generation, transmission, and distribution of electricity, serves approximately 9 million customers through its seven electric and natural gas distribution units. Currently, the company holds a Zacks Rank of #3 (Hold), indicating a neutral outlook for investors.

For those interested in the utility sector, there are several stocks with more favorable rankings. TransAlta Corporation (TAC) currently has a Zacks Rank of #1 (Strong Buy), making it an attractive option for investors seeking growth. Algonquin Power & Utilities Corp. (AQN) and Centuri Holdings, Inc. (CTRI) both carry a Zacks Rank of #2 (Buy), reflecting positive expectations for their performance.

TransAlta is Canada’s largest non-regulated electric generation and marketing company. According to the Zacks Consensus Estimate, TAC’s next-quarter earnings are expected to show a 218.7% year-over-year growth. Algonquin Power, a renewable energy and regulated utility company, is projected to see 3.3% year-over-year growth in 2025. Centuri Holdings, which partners with regulated utilities to build and maintain energy infrastructure, is anticipated to experience 96.9% year-over-year growth in 2025.

These companies represent strong options for investors looking to capitalize on the growing demand for clean and reliable energy solutions.